The Hospitality Retention Formula: Positive Employee Experiences

If you’ve worked in hospitality for any length of time, you’ve probably said this at least once: “Good people are so hard to find, and even harder to keep.” And it’s true. Hospitality has always been a people-first industry, built on energy, empathy, and teamwork. But when your staff is in constant churn, that people-first culture starts to fall apart. Which, unfortunately, shows in the service.

In my 25+ years helping businesses solve complex talent challenges, I’ve seen the same pattern play out again and again. When leaders invest in the employee experience, retention improves, performance goes up, and customers take notice. The good news? Creating a more positive employee experience isn’t complicated. But it does take focus, consistency, and intention.

Let’s dive into what’s really going on in hospitality today and what we can do to fix it.

In my 25+ years helping businesses solve complex talent challenges, I’ve seen the same pattern play out again and again. When leaders invest in the employee experience, retention improves, performance goes up, and customers take notice. The good news? Creating a more positive employee experience isn’t complicated. But it does take focus, consistency, and intention.

Let’s dive into what’s really going on in hospitality today, and what we can do to fix it.

Whether it’s hotels, restaurants, or event services, the hospitality industry is known for long hours, seasonal demand, and high-pressure customer expectations. However, that’s a tough mix for keeping staff happy long-term.

A turnover rate of 10-15% annually can be considered normal. But when it comes to the hospitality industry, the Bureau of Labor Statistics concludes that turnover hovers around 70-80% annually. That’s a lot of people leaving jobs, which is expensive for businesses.

Replacing just one employee can cost a company thousands. Suddenly, costs start to add up for hiring, training, and lost productivity. And then there’s the extra pressure on the team that’s left behind.

So what’s the answer? It starts with building a better experience for your team. When employees feel heard, supported, and appreciated, they stay longer. That’s what we mean by “positive employee experience.”

Here’s what that looks like in action for hospitality:

In this business, your people are your brand. So taking care of them pays off across the board.

Let’s look at a few real-world examples of what a positive employee experience in hospitality looks like:

Each of these businesses put their people first, and it’s paying off.

Let’s talk about how to actually make this happen. Here are five pillars I see make the biggest difference in hospitality:

However, you don’t need to overhaul everything overnight. Consider starting with one or two areas and building from there. Even small improvements can make a big impact on how your team feels.

In summary, creating a positive employee experience isn’t just about perks or pay. It’s about building a workplace where people feel respected, heard, and valued. When you do that, you don’t just retain talent, you unlock their full potential. Because the hospitality industry runs on people, and when you take care of your people, they take care of your guests.

So here’s my challenge to you: Take a fresh look at how your team experiences work every day. What could be easier or fairer? Or more inspiring?

And the businesses that get this right? They’ll be the ones setting the bar for what hospitality can look like in the future.